Journal of Multidisciplinary Engineering Science and Technology (JMEST)
ISSN: 3159-0040
Vol. 2 Issue 8, August - 2015
Critical Factors Affecting The Development And
Diffusion Of Renewable Energy Technologies
(RETS) In Nigeria
Abubakar Yahaya Muhammad
Department of Architecture,
Abubakar Tafawa Balewa
University,
Bauchi State, Nigeria.
[email protected]
Mohammed Gambo Abdullahi
Department of Architecture,
Institute for Smart Infrastructure and
Innovative Construction (IS&IC),
Universiti Teknologi Malaysia,
Johor Bahru, Malaysia.
[email protected]
Abstract—The paper examines the barriers,
policies, prospects as well as the factors
affecting the development and diffusion of
Renewable Energy Technologies (RETs) in
Nigeria. The study identified weak institutional
framework,
poor
policy
implementation,
inadequate financing, and lack of awareness of
the
socioeconomic,
technological
and
environmental merits of RETs as the major
barriers hindering its development and diffusion.
Furthermore, the authors affirm that a paradigm
shift is required to alter the current sociopolitical
and techno-economic dynamics of current
energy climate of fossil based fuels in the
country. This will require the adoption a fossil
fuels complementary approach as opposed to the
dominant substitution approach recurrently
described by academics in literature. The study
concludes by highlighting the future prospects
RETs development and diffusion in Nigeria.
Keywords— Renewables; Energy; Development;
Sociopolitical; Nigeria; Technovation.
I.
INTRODUCTION
The global drive for future socioeconomic growth
and sustainable development will require low cost,
clean and renewable sources of energy [1, 2]. Hence
a comprehensive and complete divestment from the
current status of fossil fuel energy dependency
towards renewable energy technologies (RETs) such
as biomass, solar, wind, and hydropower is required.
For decades, the world has relied on fossil fuels for
its energy needs notably in transport, heating, and
industry at the expense of the environment. This has
resulted in environmental degradation due to
widespread pollution and increased greenhouse
(GHG) emissions. In addition, the overreliance on
fossil fuels has presented geopolitical and
socioeconomic challenges particularly in oil
producing regions of the world. In spite of the widely
acceptable benefits of clean energy, the proposed
transition from fossil based fuels to renewable
sources has been low or unexplored notably in
developing countries like Nigeria [3].
Nma Yakubu Mohammed
Department of Architecture,
Abubakar Tafawa Balewa
University,
Bauchi State, Nigeria.
[email protected]
Nigeria is a resource rich nation with an estimated
35 billion barrels of crude oil, 180 trillion cubic feet of
natural gas, 40 billion metric tonnes of coal as well as
tar sands, precious metals, ores which account for
over 90 % of GDP annually [4]. Furthermore, Nigeria
possesses vast hydropower potential amounting to
11,000 MW, fuel-wood 13 million hectares, animal
wastes and crop residues [5]. Other renewable
sources of energy in Nigerian include solar, wind and
ocean tidal energy. However, Nigeria is plagued by
widespread socioeconomic poverty and an energy
crises despite its position as the largest producer and
exporter of crude oil in Africa [6, 7]. Consequently, it
is estimated that 60% of the public lacks access to
reliable modern energy and electricity services
culminating in the “energy poverty” scenario in
Nigeria. In general, energy poverty in Nigeria
encompasses inadequate quantity, poor quality and
low access to energy [7, 8].
Consequently, fuel-wood and other traditional
biomass sources have become the principal sources
of energy for domestic and industrial applications in
the country [9]. Currently, fuel-wood utilization
accounts for 70–90% of domestic energy use which
equates to per a capita consumption of 393.43 kg/yr
and 255.75 kg/yr in rural and urban areas,
respectively [10]. This high rate of fuel-wood
consumption has led to high rates of deforestation,
desertification, erosion and soil infertility over the
years [11]. Furthermore, the overdependence on
traditional biomass sources, dwindling fossil fuel
reserves, and adverse effects of increased
greenhouse gas emissions particularly in developing
countries like Nigeria. This has increased the calls for
the adoption of an energy economy based on
renewable energy technologies in the country.
However numerous efforts by governments in
developing countries have failed to materialize into a
sustainable energy economy based on renewable
energy technologies (RETs).
According to Tsoutsos and Stamboulis (2005), the
fundamental difference between RETs and
conventional energy systems requires an innovative
and sustainable development, diffusion and
management process for incorporation into future
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Journal of Multidisciplinary Engineering Science and Technology (JMEST)
ISSN: 3159-0040
Vol. 2 Issue 8, August - 2015
energy systems. The group also posits that the
successful integration of RETs will require a reevaluation of the dominant substitution approach of
individual technologies that all too often discounts the
interaction
of
technology
diffusion,
system
restructuring
and
technology
development.
Furthermore, policies aimed at stimulating RETs
development and diffusion will needs consider the
socioeconomic and environmental impacts of RETs
from generation to transmission and finally to
consumption [12].
Ultimately, the development and diffusion of RETs
in Nigeria will require a paradigm shift in the
technological, sociopolitical and economic dynamics
of current energy climate of fossil based fuels. This
will require a shift in dominant substitution approach
described by Tsoutsos and Stamboulis (2005) to a
complementary approach whereby RETs supplement
energy derived from fossil fuels systems. Therefore,
this paper aims to assess the critical factors affecting
the effective development and diffusion of renewable
energy in Nigeria. It will examine the current policies,
implementation barriers and future potentials of
renewable energy technologies in the country.
II.
A.
DISCUSSION
Current RETs policies in Nigeria
The actions and policies of national governments
can significantly influence the development and
diffusion of novel technologies such as RETs.
According to Hekkert et al., (2007), new technologies
such as RETs experience difficulties competing and
conquering conventional technologies such as fossil
fuels for potential markets [13]. This scenario known
as carbon lock-in effectively prevents RETs from the
cost advantages, financial subsidies and trading
markets benefits enjoyed by established or regime
technologies based on Fossil Fuels (FFs) [14]. Hence
these technologies require government support
through the creation of protected spaces or the
formation of provisional niche markets for their
development [15]. Furthermore, governments can
protect and promote novel niche technologies like
RETs by enacting favorable policies, and the
mobilization of resources through tax breaks, grants
and incentives and provision of requisite
infrastructure for growth and development.
Consequently the Federal Government of Nigeria
(FGN) has enacted a number of key energy policies
to guide and direct the development and diffusion of
RETs in the country. The umbrella policy for energy
development in Nigeria is the National Energy Policy
(NEP) enacted in 2003 [16]. The policy is aimed at
highlighting the relationship dynamics between
energy and socio-economic growth and sustainable
development in Nigeria. In general, the core
objectives of NEP include to develop and diversify
Nigeria’s energy resources in order to safeguard
national energy security, promote sustained
investments and encourage private enterprise
participation in the development of future energy
systems in the country. Lastly, the policy aims
stimulate innovative technologies and companies
working towards the providing reliable, adequate and
cost effective energy supplies to the citizenry.
However due to the broad nature of NEP and lack
of emphasis on renewables sources of energy in
Nigeria, the FGN in 2005 adopted the Renewable
Energy Master Plan (REMP) [17]. The policy was
promulgated to synchronize the visions, targets and
roadmap for tackling the challenges of energy supply
in the country. Furthermore, REMP is aimed at
addressing the key developmental challenges of
reliable and sustainable supply of energy in Nigeria
from RETs such as solar, wind, biomass, and ocean
tidal energy. The FGN envisages that REMP will
accelerate the development and diffusion of RETs in
Nigeria through the adoption of policy guidelines
through the implementation of renewable portfolio
standards; formation of innovative economic and
market incentives for the future growth of firms in the
renewable energy industry. It is also envisioned that
the provision of financial incentives such as tax
breaks, feed-in-tariffs and importation waivers for
RETs equipment will stimulate growth with the
energy sector [17, 18].
The National Energy Master Plan of Nigeria
(NEMP) is also a key RETs policy in the Nigerian
energy economy. Enacted in 2006, NEMP highlights
the prospects and potentials of hydropower as a
major source of renewable energy in the country.
Currently, Nigeria can reportedly generate 11,250
MW from large and 3,500 MW from small
hydroelectric power [7, 19]. On the other hand, the
Nigerian Biofuel Policy provides a policy framework
for the development and diffusion of biofuels in
Nigeria [20, 21]. The policy aims to emulate the
policies of nations like Brazil and Malaysia which
have successful developed biofuels and biodiesel
industry [22, 23]. Other notable RET policies in
Nigeria include Vision 2020, the National Policy in
Environment in Nigeria (NPE) and the National Policy
and Guidelines on Renewable Electricity (NPRE) of
2006 [7]. However, despite the noble intentions of the
outlined energy policies energy poverty, production
and transmission remains a key issue in Nigeria.
B.
Barriers to RETs Implementation in Nigeria
The development and diffusion of RETs into the
Nigerian Energy Economy (NEE) is plagued by
numerous challenges. As highlighted by Hekkert et
al., (2007), novel technologies such as RETs
encounter problems competing with conventional
technologies [13]. In the Nigerian context, these
challenges can be broadly categorized into;
sociopolitical and techno-economic factors. This
section of the paper will examine the crucial barriers
and challenges hindering RETs in Nigeria.
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Journal of Multidisciplinary Engineering Science and Technology (JMEST)
ISSN: 3159-0040
Vol. 2 Issue 8, August - 2015
Sociopolitical factors
The sociopolitical factors hampering RETs
development and diffusion in Nigeria are largely
centered on policy enaction, execution and
monitoring. Despite the numerous RETs policies,
energy generation and power distribution in Nigeria
remains dismally low. According to Eleri et al., (2011,
2012), the poor integration of RETs into the Nigerian
power mix can be attributed to weak institutional
framework, poor policy implementation, and lack of
awareness [7, 24]. The group posits that poor
government commitment and unsupportive regulatory
framework have stifled the development and diffusion
of RETs in Nigeria. In addition, the low integration of
RETs into Nigeria Energy Economy may also be due
to the perennial dominance of petroleum based
energy products which are readily available in the
country at subsidized prices in Nigeria.
To curb the sociopolitical challenges, the FGN
must harmonize RET laws, policies and guidelines
and re-direct national efforts towards RETs by
focusing on high potential sources such as solar,
biomass and hydropower. Furthermore, policy
implementation must be prioritized and monitored by
all the ministries and government agencies charged
with RETs in the country. The proposed reforms
should involve the ministries of Energy, Agriculture,
Environment, Science and Technology; and agencies
such as National Orientation Agency (NOA) working
hand in hand with the Energy Commission of Nigeria
(ECN). The NOA, ECN and the media in Nigeria can
improve awareness and stimulate meaningful
debates on the merits of RETs and their underlying
importance
on
socioeconomic
growth
and
sustainable development in the country. By so doing,
the government can effectively create the favorable
environment required for the formation of markets,
mobilization of resources and creation of legitimacy
[25] for RETs in the Nigerian Energy Economy.
Techno-economic factors
The techno-economic factors of RETs diffusion in
Nigeria are centered on the technology and
economics aspects of development. According to
Innovation system theories, the development and
diffusion of novel technologies require the
participation of stakeholders within the technovation
climate [25]. These strategic stakeholders can be
broadly categorized into technology producers (TP)
and technology regulators (TR). The TP comprise
technology entrepreneurs, utility companies, power
equipment manufacturers, and power distribution
companies. The regulators include; government
regulatory and supervisor agencies charged with
implementing and monitoring energy policies. The
role of TP and TRs is to design, develop and execute
innovative technologies and processes for RETs.
Despite Nigeria’s potentials, the fraction of energy
generated from RETs in the country remains low.
This may be attributed to poor financial
commitments, low infrastructure investments and
access to financing for RETs development in Nigeria.
According to Eleri et al., (2011), low RETs
development could also be due to lack of local
manufacturing capacity, and barriers to financing for
technologies [7].
Furthermore, the poor state of the educational
sector in Nigeria particularly post primary and tertiary
institutions has prevented the development of
innovative technologies and ideas like RETs in the
country. Educational institutions can provide trained
professionals, skilled labor and knowledge based
hubs required for RETs to thrive. As a result, the
RETs sector in Nigeria lacks the strategic network
linking R&D, Academia and Industry required for
knowledge development, diffusion and guidance of
search required in a novel technovation system [13,
25].
Other techno-economic factors hindering RETs in
Nigeria include the presence of subsidies petroleum
energy products in the country. As with competing
technologies, the presence of petroleum subsidies
effectively crowds out RETs out of the energy market
thereby presenting RETs as expensive alternatives.
This will ultimately discourage future investments in
R&D, equipment manufacture and clean energy
production.
Hence the government can address the status
quo by phasing out subsidies and investing more
funds in RETs development and diffusion to
encourage socioeconomic growth, sustainable
development
and environmental
remediation.
Furthermore, the accrued funds can be invested in
the Nigerian educational sector to stimulate the
development of Innovation Hubs, Technology centers
and fund Feed-in-Tariffs for the future development
of RETs in Nigeria.
C.
Future prospects of RETs in Nigeria
The development and diffusion of RETs in Nigeria
has numerous prospects for the nation. Furthermore,
RETs can theoretically address issues related to
rapidly depleting fossil fuels, concerns about global
warming, climate change and environmental
sustainability. Consequently, these possibilities will
be examined under the broad categories;
sociopolitical, techno-economic and environmental
prospects in the Nigerian Energy Economy (NEE).
The sociopolitical prospects of RETs stem from
the establishment of sound policies, laws and
institutional framework aimed at repositioning the
nation as world leader in promoting the principles of
sustainability. The result of this objective will be
increased international cooperation of matters of
sustainability, R&D collaboration and partnerships
with international funding bodies and NGOs.
The techno-economic prospects include increased
investments in social infrastructure, and sustainable
energy supply. The ripple effect will be evident in
increased job opportunities, disposable income and
improved standards of living for the citizenry.
Furthermore, the successful implementation of RETs
will
stimulate
the
knowledge
development,
knowledge diffusion networks such as technological
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ISSN: 3159-0040
Vol. 2 Issue 8, August - 2015
hubs, clusters and centers and promote future
investments in the technological base of the country.
The deployment of RETs will help reduce the
government’s recurrent expenditure and colossal loss
of revenue due to the importation of petroleum
products under the highly controversial regime of fuel
subsidies. The saved funds can be ploughed back for
future investments in social infrastructure, health,
education and technology development.
The
environmental
prospects
of
RETs
implementation will increase awareness on the
importance of reducing carbon footprint, protecting
mankind and safeguarding the planet. This will
discourage the high rate of deforestation,
desertification and loss of biodiversity in the country.
Furthermore, RETs will reduce the nation’s
dependence on fossil fuels thereby decreasing the
high rate of oil spills and environmental degradation
due to oil production in the Niger Delta region of the
country.
III.
CONCLUSION
The current policies, implementation barriers,
future potentials and factors affecting the
development and diffusion of RETs in Nigeria were
examined in this paper. The findings of the study
indicates that RETs development and diffusion in
Nigeria requires a paradigm shift in the current
sociopolitical and techno-economic dynamics of
current energy climate of fossil based fuels in the
country. Furthermore, the authors conclude that the
development and diffusion of RETs in Nigeria must
adopt a complementary approach as opposed to the
dominant substitution approach regularly described
by academics in literature.
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